In another important milestone for the adoption of cryptocurrency, the US PNC bank will start using RippleNet to process international payments for its customers.
Ripple announced on September 19, stating that PNC's treasure management unit will use its xCurrent software solution to accelerate cross-border transactions for US commercial customers of the bank.
According to initial reports, xCurrent will allow PNC customers to receive payments instantly, which will change the way businesses deal with cash flow and account management. The software allows banks to communicate instantly, to confirm payment both before and after the start of a transaction.
As a result, the price of Ripple has risen in the coming days, with a 15% increase in overall market capitalization.
On Friday, September 21st, XRP passed Ethereum to become the second largest cryptocurrency by market capitalization, at around $ 23 billion.
According to initial reports, Ripple views the move as a necessary first step to ensure that banks and financial institutions use xRapid – its liquidity product that uses Ripple's digital token, XRP.
Ripple's senior vice president for product management, Asheesh Birla, says xCurrent is "a way to get their point in the water."
These feelings follow the comments of Ripple's cryptographer chief, David Schwartz, who said in June that it was unlikely that banks would adopt blockchain systems to process internatio payments in the near future.
Schwartz cites privacy concerns and scalability as a major concern for banks. Until there is a solution that fully meets these needs, it is unlikely that large banks will go all-in with DLP technology.
Ripple's xCurrent protocol is essentially an immutable interleaver that allows instant adjustment, which is an update to current payment networks. But as Schwartz pointed out, it is not a distributed ledger.
With that being said, PNC has joined several major financial institutions that have collaborated with Ripple in various ways.
In August, Ripple expressed interest in breaking into the Chinese market in an attempt to accelerate international payments.
Ripple hopes to launch a commercial version of xRapid as early as October. The company had previously collaborated with Bittrex, Mexican Bitso and Philippine Coins.Ph to facilitate xRapid to move between XRP, US dollars, Mexican pesos and Filipinos.
The Ripple pilot of the xRapid system in May 2018 would have generated transaction savings of up to 70%, in addition to the increase in transaction speed.
Justin Sun, founder of TRON, told Cointelegraph that it predicts that other banking institutions will follow in the footsteps of PNC by adopting blockchain systems such as RippleNet:
"The increase in XRP shows the recognition of the Ripple protocol from part of PNC Bank With Bill Clinton keynoting Swell 2018, blockchain is becoming mainstream As Ripple's Chief Reporter of China since 2014-16 and Ripple's shareholder, I am confident that the financial institutions will adopt blockchain. "
Cointelegraph he also spoke with Kieran Kelly, a long-term investor in Ripple, who believes the move is a decisive step towards the adoption of Ripple:
"Ripple adds one bank a week to the network and RippleNet is active in 40 countries and on six continents: PNC, being the most recently announced bank, shows that Ripple is making huge progress globally towards traditional adoption by providing payments cheaper, faster and more transparent. "
As Kelly points out, RippleNet's speed is an interesting advocate of technology, which could accelerate international money transfers:
" The traditional financial sector is already implementing blockchain as part of RippleNet and significant benefits will lead to a Further adoption globally. Ripple offers banks the ability to make frictionless remittances in three seconds at minimal cost compared to the current format, which is SWIFT, which takes three to four days. Banks save 60-70% with Ripple. "
Others were not so confident about an impressive value expansion of Ripple this week." A quick glance at Twitter provided an interesting reading, as some users offered more skeptical views on the value of the cryptocurrency pump.
Nicholas Merten, founder of the Youtube channel Datadash, suggested that the peak in value was mainly due to traders – not large capital investors – coming to market:
Congratulations to the merchants of $ XRP I have to deliver it to the bulls, but do not be misleading, the volume we are seeing is NOT what XRP token for xRapid is buying in. It is purely whale and retailer ATM.
Ripples tech – Impressive
Ripples token – Light value to be used in transactions
– Nicholas Merten (@Nicholas_Merten) 21 September 2018
Matthew Newton, an analyst at eToro, has made clear to The Independent that XRP was the flavor of the week after the announcement of the PNC partnership:
"Despite being one of the most polarizing cryptographers of all, eToro's customers never get enough of the XRP moment; has more visibility than any other resource on our platform. As we have seen in the past, the price tends to move in short, to sharp gusts, collecting a lot of momentum when building the hype. It remains to be seen how far it could go. "
As we have seen in the past, the good news perceived often push investors' sentiment, and this is clearly the case when it comes to XRP.
The next few days will determine if the recoveries of the cryptocurrency remain strong, later the cryptic community will wait impatiently for the propagated launch of xRapid next month.